Comment Text:
Dear Chairman and Commissioners,
My name is Desmond Jackson, and I'm just an everyday citizen from Texas writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've used prediction markets a few times, and while I have real concerns about them, I believe they shouldn't be banned outright. I want to explain why I think they serve a purpose beyond what I initially saw as gambling.
Ill be upfront: I struggle with a gambling addiction, and I know firsthand why gambling isn't legal everywhere. When I first came across prediction markets, I thought they were just gambling in disguise. It felt sickening to me, like a loophole for something Ive fought hard to avoid. But after using them a bit and thinking it over, Ive come to see theyre not the same as pulling a slot machine or betting on a horse. These markets take research and judgment. I had to read up on events, think about probabilities, and make decisions based on real-world information. It felt more like investing in stocks than rolling dice. I believe event contracts have a legitimate economic purpose, like helping people hedge risks or figure out whats likely to happen in a way polls and pundits cant match.
I also think the United States should be a leader in financial innovation. If we over-restrict or ban prediction markets, were just pushing this activity to other countries where theres no oversight at all. Id rather see the CFTC regulate these markets properly here at home, keeping them safe and fair, instead of letting offshore platforms take over with no rules. We can set the standard for how this new kind of market should work.
I noticed some of the questions in the ANPR, like Question 15 about defining gaming versus legitimate markets, and Question 7 on balancing innovation with consumer protection. On gaming, Id say these markets arent gambling if theyre structured around real research and economic value, not just luck. And on innovation, I think protecting people like me, who have gambling issues, means clear rules and warnings, not a total shutdown. A ban would punish everyone for the risks a few face.
Im not blind to the downsides. I know these markets can be abused, and Ive felt that pull myself. But the answer isnt to take them away completely. Its to regulate them with a steady hand. The CFTC already has tools to stop manipulation and insider trading in other markets. Use those here too. Dont let a few bad actors ruin something that could be useful for many.
I ask you to support proportionate regulation of prediction markets. Dont ban them or make the rules so tight that only big institutions can play. Keep regular folks like me in mind, with safeguards, but let this innovation grow under your watch.
Sincerely,
Desmond Jackson
